Mortgage Payment Calculator

How to Use the Calculator

Using our Mortgage Payment Calculator is simple. Just fill in the following fields:

• Home Price: The total cost of the property.
• Down Payment: Either enter the dollar amount or percentage.
• Annual Interest Rate: The loan's interest rate (e.g., 6.5%).
• Loan Term: Choose how many years you plan to repay the mortgage (commonly 15 or 30).

Optional fields help you factor in additional monthly expenses:

• Property Taxes
• Homeowners Insurance
• PMI (Private Mortgage Insurance)
• HOA Dues

Click "Calculate Payment" to view your monthly cost, including Principal & Interest (P&I), and any optional costs.

Understanding the Results

The calculator breaks down:

• Loan Amount: Home Price minus Down Payment.
• Monthly P&I Payment: Based on your interest rate and loan term.
• PMI: If your down payment is less than 20%, PMI will be added.
• Amortization Schedule: Shows how much of each monthly payment goes toward principal and interest.

For instance, an average U.S. home priced at $400,000 with 20% down and a 6.5% interest rate over 30 years shows:

• Monthly P&I: $2,021.10
• Total Interest: $327,596.23
• Total Loan Cost: $647,596.23

Tips to Save Money

• Increase your down payment: Avoid PMI and reduce the loan amount.
• Shop for lower interest rates: Even 0.5% can save thousands over the loan's life.
• Compare loan terms: A 15-year loan often has lower total interest than a 30-year one.

Try the calculator now to see how changing your inputs affects your monthly payments!

FAQ:
Q: What does P&I stand for?
A: P&I means Principal and Interest—the core components of your monthly mortgage payment.
Q: Why do I need to pay PMI?
A: If your down payment is less than 20%, lenders often require PMI to reduce their risk.
Q: Can I include taxes and insurance in this calculator?
A: Yes, optional fields allow you to estimate those costs in your monthly payment.
Q: How accurate is this calculator?
A: It provides a close estimate, but actual payments may vary based on lender fees and local taxes.